1. How can Entrepreneurship help create Wealth for Economies, Businesses and Communities Thabo Thamane Chief Executive Officer CEDA Global Expo 24th November 2016

2. Entrepreneurship and Wealth Creation
Entrepreneurship – the recognition of an opportunity to create value, and the process of acting on this opportunity, whether or not it involves the formation of a new entity.
Surveys show that entrepreneurship has superseded inheritance as the main source of wealth creation in developed economies
while in developing economies many entrepreneurs are now dealing with succession and inheritance planning for the first time

3. Entrepreneurship and Wealth Creation
There has been a big shift in the way the world’s wealthiest are spending and sharing their money due to changing patterns of wealth creation.
40% of those surveyed listed entrepreneurship as one of their main sources of wealth, compared with 26% for inheritance
Technological related sectors and property sectors have been cited as areas where wealth creation is achieved over a shorter period
Entrepreneurs through their breakthrough technologies and rapidly growing businesses create new wealth that can generate even greater economic growth

4. Entrepreneurial Activity and Economic Growth
Contribution of entrepreneurial businesses to economic growth is an often debated
It is however evident that high growth entrepreneurial businesses have made a substantial impact on the economy
However, the high profile high growth entrepreneurs are small in number relative to the hundreds of thousands of new start-ups

5. Entrepreneurial Activity and Economic Growth
Recent evidence suggests that start-ups and young businesses make important contributions to job creation, innovation and productivity growth
However, since many start-ups fail and don’t grow, it is apparent that any job creating prowess is not shared equally amongst young businesses
Globally only 40% of start-ups survive 3 years and more

6. Measures to leverage on Entrepreneurship
1.Create an enabling environment for innovation and entrepreneurship
Lowers barriers to market entry
Create support mechanisms for entrepreneurship
Increasing opportunities for people to learn the process of becoming an entrepreneur and starting a business
Offer incentives that foster entrepreneurship
Access to reliable and steady source of funding
Diverse sources of risk capital
Supporting and incentivizing angel investors

7. Measures to leverage on Entrepreneurship
2. Narrow the information asymmetry between SMEs and financing institutions
Access to up to date and reliable information
Credit bureau that reports both negative and positive list
Help understand the extent of borrowing not just the bad borrowing
3. Fostering the development of innovative instruments and risk sharing arrangement
Leasing

8. Measures to leverage on Entrepreneurship
4. Encourage big firms to support small enterprises
Suppliers
Access to finance
5. Strengthen financial institutions support to SMEs
Increase funding pool to SMEs

9. CEDA - Mandate
CEDA represents Government’s commitment to citizen economic empowerment and the need to support business development and promote citizen entrepreneurship
CEDA’s primary mandate is to support development of the SMME sector through debt and equity financing as well as provision of relevant training and mentoring services that enable capacity building.

10. CEDA - Background 1
Development Financial Institution (DFI) wholly owned by the Government of Botswana. 2
Supports business development through various funding mechanisms, thereby promoting citizen economic empowerment and entrepreneurship. 3
Provides training and mentoring services for its clients, thereby enhancing the success of investments made in citizen business ventures. 4
Promote the development of vertical and horizontal linkages between citizen enterprises and primary industries in agriculture, manufacturing, tourism etc. 5
Through collaboration with other Government institutions and parastatals we help improve efficiency in delivery of services to businesses.

11. CEDA FOOTPRINT The Largest Citizen Empowerment Scheme in Botswana4
10 CENTRES:
Francistown
Selibe-Phikwe
Palapye
Kasane
Gaborone
Molepolole
Kanye
Hukuntsi
Gantsi
Maun 1 2 9 3 4 5 6 7 8 10 1 2 1 9 3 2 3 4 5 8
Hukuntsi 5 6 6 7 7 8 9 10
The Largest Citizen Empowerment Scheme in Botswana

12. CEDA Funding
Since inception the Agency has financed projects as follows
Fund
Number of Projects
Amount P Million
Development Fund
5,244
3,806
CCGS
783
209
CVCF 16
212
CEMAEF 12 13
Total
6,055
4,240
The financed projects have created more than 52,000 employment opportunities

13. Way forward
Need to further under understand challenges that entrepreneurs face
Effective entrepreneurial development can set in motion a wave of impacts in the economy that go beyond wealth created by individual entrepreneurs

14. Thank You